Rebooting the boom: Unfinished business on the supply side

The so-called “mining boom” of the early 21st century has seen the resources share of Australia’s total goods and services exports double in real terms from approximately one-quarter to one-half.

Maximising growth in a mining boom

Australia has a once in a generation opportunity to lift its wealth. Yet rather than focus on how to maximise the benefits of the mining boom, debate has been mainly about the sectoral conflicts a mining boom creates. Focusing mainly on distribution issues risks choosing policy options that reduce the potential gains for the nation as a whole. We need policy reforms that lift Australia’s overall growth rate by encouraging resources to move into the things we are best at doing, rather than subsidising uncompetitive firms.